Monaco holds onto top spot for most expensive residential real estate.
International interest in Monaco was sustained throughout 2020 and luxury real estate expects to see a surge of demand for both sales and rentals once travel restrictions are lifted.
Monaco remains the most expensive location to purchase property worldwide with an average price of €47,600 per sq m, however values are down 1.1 per cent year on year, according to global real estate brokerage Savills. Hong Kong, the second most expensive location across the globe, saw average prices per sq m fall 3.9 per cent to €39,600 in 2020.
Transaction numbers declined by 11 per cent in 2020 compared with 2019, particularly for larger properties with four bedroom plus apartments and villas down 38 per cent and 53 per cent respectively. The travel restrictions seen over the 2020 meant that Monaco was primarily a domestic market and kept most overseas buyers from making the big-ticket purchases that they are known for.
Properties priced under €5 million, and accounting for 71 per cent of the total sales, was the most active price point in the Monaco Principality with transactions down by only 6 per cent. In contrast, transactions for properties priced over €10 million were down by 39 per cent.
The falls in transaction values at higher price points did not translate to equally lower prices, showing that buyers who did purchase were still willing to pay pre-pandemic prices. The slight decline in prices of 1.1 per cent is not enough to derail the upward trajectory of the Monaco residential property market, which has grown by over 50 per cent in the last decade.
As with the sales market, Monaco is the most expensive location in which to rent residential property and travel
restrictions have kept new residents, who would likely rent before they purchased, away. Without this supply, demand for rental property fell in 2020 and average rental prices declined by 23 per cent to €89 per sq m.
Top 20 most expensive residential real estate by Savills.
2. Hong Kong;
3. New York;
13. San Francisco;
17. Los Angeles;